Loan officers play one of the most important roles in the loan process. They are the advisors that help individuals in analyzing their financial situation, understanding their options, and choosing the best loan structure that suits them the most. Their job requires a high amount of skill and credibility, and that’s what makes them the trustworthy financial advisors that they are.
On the other hand, pursuing a career as a loan officer can be quite rewarding for you. Not only do you get to help people in their most difficult times, but the career path of a loan officer provides you with financial satisfaction and growth potential.
To jump-start your career as a loan officer, here are the 6 steps you need to take:
1. Level of Education
Working as a loan officer only requires a high school diploma in most firms, but the more qualified you are, the better your opportunities. Some firms will have a minimum requirement of a bachelor’s degree from a relevant field of study, such as business, accounting, economics, or other related fields. During the course of getting your bachelor’s degree, you can expect to study mathematics, accounting, business, economics, finance, and statistics.
2. Interpersonal Skills
Working as a loan officer demands a strong set of interpersonal skills; your work will depend on them. Not only will you deal with people on a regular basis, but you’ll also need to guide them in financial decisions, which is often quite complicated. Your role will also include giving them reassurance, advice, and regular follow up. To do that, you’ll need to have impeccable communication skills, compassion and empathy, social intelligence, and a friendly demeanor.
3. Personal Skills
Your own personal skills will also play a huge role in your success as a loan officer. This kind of job requires a vast amount of knowledge and experience so that you’ll be able to provide the best options for your clients. It’s never a one-size-fits-all job; each client will come with their unique situation, requiring a customized solution. You’ll also need to have good organizational skills with eyes for details, which you’ll need in devising the loan structures that your clients settle upon.
4. Work Experience
No matter the degree of education you have, you’ll need to go through a comprehensive period of hands-on training before being able to work as a loan officer. Depending on the requirements of the employer, you’ll be required to complete a certain amount of training hours before you’re accepted. In case you don’t have any previous work experience, you’ll need to seek different loan firms and apply for jobs in different settings. There are high chances that you won’t start as a loan officer, but by applying for a job in customer service, banking, or sales, you’ll work closely with loan officers and build up your experience gradually.
5. Specialization
After building sufficient general experience, it’s time to find your field of specialization. As a loan officer, you’ll have a variety of specialties to choose from. The most common specializations are divided into 3 categories: consumer, commercial, and mortgage loans.
Specializing in consumer loans will have you working with individuals on a regular basis. You’ll guide them through processes such as education loans, automotive loans, home renovation loans, or other kinds of individual loans. Commercial loans focus on dealing with businesses. As a commercial loan officer, you’ll help businesses in getting business loans for inventory, business expansion, or other kinds of business loans. Mortgage loans are the most complicated line of work. You’ll be working closely with real estate buyers, helping them in financing their new homes, buy property, or adjust their existing mortgages.
After choosing a specialization, you’ll go through additional training to build your experience.
6. License
After choosing your field of specialization, you’ll need to obtain your license to finally start your work as a loan officer. There are a few requirements in order to get licensed, such as completing a 20-hour course work and running a background check. Loan officer requirements can change according to your state, so make sure to browse this page to understand the full requirements for getting your license as a loan officer. For instance, some states require completion of NMLS education, passing an NMLS test, and acquire an NMLS credit report.
Pursuing a career as a loan officer can be quite rewarding, but it’s not for everyone. This line of work requires impeccable personal and interpersonal skills. While you can start working after getting a high school degree, most firms will require a minimum education level of a bachelor’s degree. Before being able to jumpstart your career, you’ll need to get sufficient practical experience, specialize in a field, and then get your license.